Exemptions & Collections in Debt Judgments

You may consider yourself unique, one-of-a-kind, invaluable—your credit card company may consider you an asset waiting to happen.

So your credit card company sued you in small claims court. A debt judgment is just a piece of paper; they may as well print it on two-ply for all it is good for if you have no money. If there is nothing for them to collect from you, then there is nothing for them to collect. Either you are collectable or you are not, EXCEPT the creditor is going to watch your accounts for the next 20 YEARS. You may not always be broke.

So you filled out your Fact Information Sheet—how much money you do NOT make, how many cars you do NOT own, and the Renoir you do NOT have in your basement.

The creditor will go after cash first. They do not have to liquidate cash—it is liquid. If you have no cash, then they will look at other assets. If you have no other assets, then they will wait, and they will wait and wait, and watch your bank account to see if anything changes.

The difference between exemptions and collections is about twenty years. You only have a limited time to claim exemptions from judgment, but once a debt judgment is entered, creditors have TWENTY YEARS to COLLECT. They can garnish your bank account without notice to you, freezing any good fortune you happen to come into.

The best way to avoid a debt judgment is not to go into debt. Beyond that, examine what exemptions you may be eligible for AND CLAIM YOUR EXEMPTIONS as soon as possible.

Exemptions to collection judgments include:

1. Head of household at a certain income level

2. Social Security benefits

3. Pension

4. Disability

For general information on Small Claims Court, go to http://www.clk.co.st-johns.fl.us/family/forms/smallinfo.PDF. To review your case and potential exemptions, seek competent legal counsel. You do not need an appointment to pick up a pamphlet at Legal Aid (222 San Marco Avenue, St. Augustine) about collection exemptions and how to claim them.